Letting out rooms in my house

  • Filter
  • Time
  • Show
Clear All
new posts

  • Letting out rooms in my house


    I have two empty bedrooms in my house that I am considering renting out to help with my mortgage. I have been searching the internet and this website for information that is useful for my situation but I am finding it difficult to locate. Is there anyone here that could offer me advice, or link me to the relevant articles (I am sure they are here, I just can't seem to see them!)?

    What I'd like to know are what I assume are the basics:

    Legally, how does it affect the situation if I live in the house? I gather that I do not need to convert to a buy to let mortgage as I'll still be living here, does this change depending on the amount of people in the house? I have two reception rooms, one of which could be an extra bedroom.

    Do I need to declare the income? Is it taxable?

    Thank you very much.

  • #2
    I do this, the bank set up a separate account for the lodger income to go into, which makes keeping track of payments and how much tax to pay, easier. The government has a scheme called the rent a room scheme and you can earn so much from lodgers per year, tax free. My mortgage company were fine with it but the insurance company increased the premium and advised me to get refs. I contacted the council and my council tax increased too. I got an advice email leaflet thingy from spareroom.co.uk


    • #3
      Anything above £4,250 is taxable. N.B. if you charge extra for electricity etc. then that goes against the £4,250.

      e.g. Annual rent, £5,000. Total for electricity and telephone £250. Total receipts £5,250; tax free £4,250, therefore tax payable on £1,000.

      Mind you get a gas safety certificate if you have gas.


      • #4


        Latest Activity


        • Freeholder Scaffolding Over My Flat
          I have a leasehold studio flat with a garden in London that I rent out to tenants.
          Recently, the freeholder gave me three days notice that he was extending part of the building my flat is joined to and he would need to put scaffolding on my flat roof and in my garden. I immediately objected saying...
          24-07-2017, 21:20 PM
        • Reply to Freeholder Scaffolding Over My Flat
          Thanks for the above info, especially the 20-30% info, I wanted to get an idea of the standard/reasonable amount.
          He does have permission, but we were not informed, although our lease stipulates that we cannot object to any of his building works. SO not a lot I can do about that.
          Can anyone...
          25-07-2017, 20:24 PM
        • Tenant application form
          Hi all!

          So we are just about to put our flat on the market to rent is there anywhere we can get a ODF application form that we can email to any prospective tenants?

          Thanks in advance,

          25-07-2017, 20:14 PM
        • Three guarantors = three guarantees of deed or just one?
          I will have three guarantors as there are three (student) tenants. The agency has sent me a guarantee-of-deed sample, but i'm not sure whether i should send a separate one to all guarantors, or just have one listing all guarantors. What do others on here do?
          25-07-2017, 10:05 AM
        • Reply to Three guarantors = three guarantees of deed or just one?
          I've used landlordreferencing.co.uk for the referencing and RGI. They seem to think it's standard to ask the guarantors to guarantee the full amount. They weren't even sure whether they could provide RGI if the guarantors are only liable for 1/3 rent. So i have asked them to check with the underwriter...
          25-07-2017, 18:19 PM
        • Burglary Damage - Who Pays?
          Our rented flat was broken into, in the process the Yale lock was broken and cost £100 to repair. The landlord is refusing to pay this on the basis we didn’t also lock the door with the mortice lock. We didn’t use the mortice lock as it wasn’t working although the landlord did not know this....
          25-07-2017, 11:40 AM
        • Reply to Burglary Damage - Who Pays?
          It is typically a condition of insurance that there be secure, morticed deadlock, at least for contents insurance....
          25-07-2017, 17:09 PM
        • AST end date 31/07/17 advice needed.
          Hi, Guys, I have posted a few threads on this forum now and although the section 21 notice is probably invalid I don't want to let the landlord know that yet.
          I'm after help with writing my landlord a letter. He wants us out on the 31/07/17 and keeps asking me how I intend to leave the keys for...
          25-07-2017, 09:54 AM
        • Reply to AST end date 31/07/17 advice needed.
          I hear you Wright76 we're stressed out as well. We have 3 kids all with additional needs so don't want any court action and definitely not bailiffs. My landlord doesn't understand why I'm being picky, with the needs my kids have they all need separate rooms. I haven't told the landlord this as it's...
          25-07-2017, 16:45 PM
        • Reply to Burglary Damage - Who Pays?
          Thanks for your reply jpkeates, although just so I am clear and for the avoidance of doubt is your statement that as there has been damage while we were responsible for the property we are, consequently, responsible for the damage, your opinion or a fact?
          25-07-2017, 16:17 PM